Nokia Case Study

Nokia Case Study “We are standing on a burning platform.” noted Stephen Elop in a speech to the company staff in 2011, shortly after being appointed as a chief executive officer of Nokia (The Guardian, 2011). The company, founded in 1865, was losing its ‘platform’ in the telephone market after holding the position of a world leader for over a decade. Nokia started off as a paper mill on the banks of the Nokiavirta river, after which it took name. The company gradually evolved into a conglomerate operating in many industries. Widening the production of paper for cables and tyres manufacture, it added an electronics department which allowed Nokia to enter the telecommunications market (Nokia, 2015). After a deregulatory move towards a single

In the previous decade, Nokia relocated factories to developing countries with low labour costs, such as China, India and Vietnam. These operated alongside their European factories in Germany and Hungary. Losing “the battle of devices”, Nokia has decided to lower the cost of producing even more. As a part of a strategy to improve competitiveness, assemblies in Europe were shut down and the production sites near suppliers in Asia remained in operation. In addition, Asian governments offered tax and electricity benefits to drawn Nokia in (Cereal, 2015). Porter (1979) points out governments play a role in the barriers company imposes on rivals. Nokia is subject to Finnish law and is obliged to act accordingly. Nokia continues to benefit from a restricted stock plan that is not performance, but time based (Nokia, 2015). In addition, Nokia holds numerous valuable government-protected patents ranging from phone functions to design innovations. Nokia (2015) recognises its patents and copyrights as important “intellectual property

Recent years raised concerns whether connecting our e-mail and bank account to our mobile phones is really secure. Cord (2014) points out privacy as the biggest issue of mobile phone industry and calls for openness and honesty since data tracking is becoming a common phenomenon. A radio cloud network introduces security solutions for the next-generation breaches.
HERE might be called Nokia’s proudest accomplishment. This mighty mapping intelligence system is providing real-life data on parking, traffic and petrol prices, which dynamicity improves driver’s experience. The system is supported by technology development happening at Nokia Networks. HERE dominates both European and American market, with only Google as a potential competitor. The maps can be found in BMW, Volkswagen and Toyota cars and even Amazon uses them to support their delivery service. The application is also available on several operating systems for free (Nokia,